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60
disclosures previously required by SFAS 141, better defines the acquirer and the acquisition date in a business
combination, and establishes principles for recognizing and measuring the assets acquired (including goodwill), the
liabilities assumed and any noncontrolling interests in the acquired business. SFAS 141(R) also requires an acquirer
to record an adjustment to income tax expense for changes in valuation allowances or uncertain tax positions related
to acquired businesses. SFAS 141(R) is effective for all business combinations with an acquisition date in the first
annual period following December 15, 2008; early adoption is not permitted. We will apply the provisions of SFAS
141(R) when applicable.
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial
Statements—an amendment of ARB No. 51” (“SFAS 160”). SFAS 160 requires that noncontrolling (or minority)
interests in subsidiaries be reported in the equity section of our balance sheet, rather than in a mezzanine section of
the balance sheet between liabilities and equity. SFAS 160 also changes the manner in which the net income of the
subsidiary is reported and disclosed in the controlling company's income statement. SFAS 160 also establishes
guidelines for accounting for changes in ownership percentages and for deconsolidation. SFAS 160 is effective for
financial statements for fiscal years beginning on or after December 1, 2008, and interim periods within those years.
As of February 29, 2008, we did not hold any noncontrolling interests in subsidiaries.
In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities
– an amendment of FASB Statement No. 133” (“SFAS 161”), which expands the disclosure requirements about an
entity’ s derivative instruments and hedging activities. SFAS 161 requires that objectives for using derivative
instruments and related hedged activities be disclosed in terms of the underlying risk that the entity is intending to
manage and in terms of accounting designation. The fair values of derivative instruments and related hedged
activities and their gains are to be disclosed in tabular format showing both the derivative positions existing at
period end and the effect of using derivatives during the reporting period. Any credit-risk-related contingent
features are to be disclosed and are to include information on the potential effect on an entity’ s liquidity from using
derivatives. Finally, SFAS 161 requires cross-referencing within the notes to enable users of financial statements to
better locate information about derivative instruments. These expanded disclosure requirements are required for
every annual and interim reporting period for which a balance sheet and statement of earnings are presented. SFAS
161 is effective for fiscal years beginning after November 15, 2008, with early application encouraged. We will be
required to adopt SFAS 161 as of March 1, 2009.
17. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year
(In thousands except
p
er share data) 2008 2008 2008 2008 2008
Net sales and operating
revenues................................. $ 2,147,134 $ 2,122,530 $ 1,885,300 $ 2,044,607 $ 8,199,571
Gross profit ................................ $ 284,221 $ 288,194 $ 242,883 $ 257,127 $ 1,072,425
CarMax Auto Finance
income (loss).......................... $ 37,068 $ 33,412 $ 16,347 $ (962) $ 85,865
Selling, general and
administrative expenses ........ $ 213,814 $ 214,196 $ 210,508 $ 219,854 $ 858,372
Net earnings ............................... $ 65,355 $ 64,995 $ 29,846 $ 21,829 $ 182,025
Net earnings per share:
Basic ...................................... $ 0.30 $ 0.30 $ 0.14 $ 0.10 $ 0.84
Diluted ................................... $ 0.30 $ 0.29 $ 0.14 $ 0.10 $ 0.83
First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year
(In thousands except
p
er share data) 2007 2007 2007 2007 2007
Net sales and operating
revenues................................... $ 1,885,139 $ 1,929,542 $ 1,768,147 $ 1,882,828 $ 7,465,656
Gross profit ................................ $ 248,255 $ 253,365 $ 228,609 $ 240,833 $ 971,062
CarMax Auto Finance income.. $ 32,394 $ 36,512 $ 31,974 $ 31,745 $ 132,625
Selling, general and
administrative expenses ........ $ 186,966 $ 200,049 $ 187,318 $ 201,835 $ 776,168
Net earnings ............................... $ 56,776 $ 54,264 $ 45,419 $ 42,138 $ 198,597
Net earnings per share:
Basic ...................................... $ 0.27 $ 0.26 $ 0.21 $ 0.20 $ 0.93
Diluted ................................... $ 0.27 $ 0.25 $ 0.21 $ 0.19 $ 0.92